You probably thought it was tough being a small contractor before lowest price contracting, strategic sourcing, and the budget crunch, right?

Well, add on to those conditions that primes are giving less business to subs and that fewer contracts overall are being awarded.

Ouch!

What’s a small contractor to do?

Here are a few things you need to do, and some things you need to consider.

First, differentiate or die. Understand what your core strength is (preferably one the market wants) and lead with it. HingeMarketing.com has some really good information on differentiation and I will produce a seminar on differentiation in June. Understand how it is done and how it is communicated.

Second, understand how the government buys what you sell. Many assume a GSA schedule is the gateway, but this is not always the case, and is becoming less so. The schedules are not growing, and GSA is restricting the number of vendors on several schedules. Guy Timberlake of the American Small Business Coalition has been pushing simplified acquisitions (SAP) for a couple years. Maybe it’s time to take a good look at other contractual vehicles.

Third, determine the path of least resistance for growth. If you have a foothold in one agency, it is always better to grow your business where they know you rather than to chase the rainbow of other agencies. It is always easier to sell where you and your company are known, and most federal agencies are large enough for you to expand your foothold into a strong base.

Keep reading this article at: http://washingtontechnology.com/articles/2014/03/14/insights-amtower-small-biz.aspx